Podcast
Questions and Answers
What is the beta of security i given Cov(Ri,Rm) = 0.01104, ρi,m = 0.3, and σm = 0.16?
What is the beta of security i given Cov(Ri,Rm) = 0.01104, ρi,m = 0.3, and σm = 0.16?
- 0.045
- 0.135
- 0.225
- 0.195 (correct)
Based on the historical data for RTF and KIU, what is the estimate of the covariance between RTF and KIU?
Based on the historical data for RTF and KIU, what is the estimate of the covariance between RTF and KIU?
- 0.110
- 0.040
- 0.085
- 0.065 (correct)
If the correlation coefficient between RTF and KIU is 0.4500, what does this indicate about their relationship?
If the correlation coefficient between RTF and KIU is 0.4500, what does this indicate about their relationship?
- They have a strong positive relationship (correct)
- They have a perfect positive relationship
- They have no relationship
- They have a strong negative relationship
Given the data for JKU stock and a market-index, what does a high covariance suggest about the relationship between JKU stock and the market-index?
Given the data for JKU stock and a market-index, what does a high covariance suggest about the relationship between JKU stock and the market-index?
How does beta differ from correlation coefficient when analyzing securities?
How does beta differ from correlation coefficient when analyzing securities?
In finance, what does a low beta value for a security typically indicate?
In finance, what does a low beta value for a security typically indicate?
Based on the capital asset pricing model (CAPM), how is JKU valued?
Based on the capital asset pricing model (CAPM), how is JKU valued?
Using the asset-based valuation approach, what is the estimated value per share of ZANACO?
Using the asset-based valuation approach, what is the estimated value per share of ZANACO?
Which discount rate is likely to result in a negative Net Present Value (NPV) for the given project?
Which discount rate is likely to result in a negative Net Present Value (NPV) for the given project?
If the broker submits a limit buy order for 700 shares at K20.50, what is the most likely average price they would pay?
If the broker submits a limit buy order for 700 shares at K20.50, what is the most likely average price they would pay?
Assuming the beginning value of the float-adjusted market-capitalization-weighted equity index is 100, what is the likely ending value?
Assuming the beginning value of the float-adjusted market-capitalization-weighted equity index is 100, what is the likely ending value?
Calculate the firm's degree of total leverage (DTL).
Calculate the firm's degree of total leverage (DTL).
